Be careful about Short Sales and thinking they are a win/win. Read the Demand letter very carefully. The banks can EITHER 1099 you for the difference in settlement sale cost vs. you loan amount, OR they can pursue you for a deficiency judgement for the balance..even in a non-recourse state! Probably only going to 1099 you (in CA) for the state taxes, but talk to your CPA and/or attorney first! Go in with your eyes wide open..

The HOA fees are probably already in lein status on the property. I would suggest that you contact a local short sale
realtor who can sell the house at market price and have the bank cure any leins on the property as part of the closing.
Remember that as part of the short sale you are given a letter of forgiveness for the remaining balance of the loan (s).
So its hard to believe but a short sale is a win win for both the buyer and seller. Its the banks who are taking the losses right now.

Have you considered a short sale rather than lose your property to the bank? I Would be happy to explain all your options with you. please call or e-mail @ 760.832.4731 or TiffanyFairfield@earthlink.net. Thanks

You need confer with an attorney you are still held responsible for mortgage, insurance, tax and HOA fees. Have you consider speaking with bank keep your home out of foreclosures. Most banks don't want your home

HOA most likely have lien on your home for unpaid fees. In some instances based on rules could foreclosure on your home.

Have an attorney review all your documents

Sorry read about this hope all works out for you.

National Featured Realtor and Consultant, Texas Mortgage Loan Officer, Credit Repair Lecturer
Follow me on Twitter: http://twitter.com/Lynn911
Lynn911

http://www.lynn911.com

Lrrunway , I agree with Bill, one would assume that obligations will continue to accumulate until Title is transferred. HOA fees can become a lien against the property, and HOAs have been known to actually foreclose on property for non-payment.

Best, Steve

This is not intended to be percieved as legal advice but it would be fair to assume that your financial responsibility for the property would not be terminated until the bank or another party takes ownership.

If the bank is in the "process" of foreclosing, the title is still in your name.